JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry stated.
If executed, the B40 mandate could increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.
"We hope the trials could be ended up in December, so that complete execution of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.
The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to meet B40 demand, with installed capacity anticipated to increase to 20 million KL every year next year from 18 million KL now.
"However we will require more raw materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.
The biodiesel market would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he added.
Indonesia's most significant palm oil association GAPKI stated a decline in exports indicated there would suffice basic materials to provide the B40 required in the meantime.
But the market would need to evaluate "which one would be more important", GAPKI chairman Eddy said, describing the possibility a boost in exports would make providing the domestic market less practical.
Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% increase from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic consumption rose, driven by biodiesel mandate.
The ministry had actually tested the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while preparing to evaluate the B40 mix on agriculture equipment, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati
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Indonesia Plans Increase in Palm Oil based Biodiesel In 2025
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